Lakshmi Vilas Bank to raise Rs 350-cr by September

Looks at branch expansion including in North India

Lakshmi Vilas Bank (LVB) is planning to raise around Rs 350 crore through Qualified Institutional Placement (QIP) or other modes, by the end of September, this year.

The Bank, which has last year cut down its target of opening branches, is expected to open at least 60 branches this year, said Rakesh Sharma, managing director and chief executive officer, LVB.

Speaking to reporters after announcing the financial results for the quarter ended June 30, 2015, Sharma said that the Bank is planning to raise the fund to maintain its capital adequacy ratio.

LVB's capital adequacy ratio is above 10 per cent, which is currently more than the mandatory requirement, he added.

It has set up 71 branches in 2013-14 and had a target to set up another 75 branches in 2014-15. However, it has later reduced the target numbers and opened around 40 branches during the year, with more focus on stabilising business in the branches opened during 2013-14.

It currently has around 400 branches spread across 16 States and 1 Union Territory and a network of a total 820 ATMs till the end of June 30, 2015.

It has received approval from Reserve Bank of India to open 60 more branches this year, of which around 15 would be open in North India, where the Bank is increasing its presence, said Sharma.